Question

Shoreline Insurance deposited $27,000 in an account paying 4 compounded daily on April 2 and deposited an additional $4,200 in the account on May 12. Find the balance on July 1.

Answer 1

Balance on balance on July 1 is $31490.67

Step-by-step explanation:

given data

deposited P = $27,000

time = April 2 to May 12 = 40 days

rate = 4 % = 0.04

solution

we get here first compound amount that is express as

amount = P ×
`(1+(r)/(n))^(nt)` ...................1

put her value

amount = 27000 ×
`(1+(0.04)/(365))^{(365* (40)/(365))}`

amount = $27118.60

and

now we add here $4,200 in $27118.60 that will be

new principal P = $31318.60

and time t = 12 may to July 1 = 50 days

we get here amount that is put value in equation 1 we get

amount = $31318.60 ×
`(1+(0.04)/(365))^{(365* (50)/(365))}`

solve it we get

amount = $31490.67

so that balance on balance on July 1 is $31490.67